Welcome to Golden Nugget Friday, before I begin I wanted to give you a heads up about our guest for next week’s interview. She is a spitfire and a lady who gets things done! Tina Tower. She started her first business at age 20 has since sold two businesses and has a thriving franchise of early learning centres which get children ready for school. You don’t want to miss this episode! So if you have not already signed up for regular updates for our upcoming podcast then please take a moment to head over to our Inspiring-greatness.com.au page and quickly provide your name and email address. When you do you will receive a bonus free weekly planner!
Now onto the importance of Corporate Responsibility & how it can help your business thrive… I was inspired by Jasmine’s interview earlier this week, not only because she is accomplishing amazing things with business at such a young age but because of her maturity, her passion and views on philanthropy. Seriously, when I was in my twenties and started my first business Philanthropy and Social Responsibility were not in my thoughts, not even on my radar. At the beginning of my entrepreneurial journey, I was struggling just to grow the sales, streamline processes, motivate staff and stay profitable.
I thought it was the responsibility of “the Billionaires” of the world such as, Bill Gates, Ophra & Richard Branson, to contribute and inspire. Now I realize that you do not need to be a big corporation to add Philanthropy and Social Responsibility components to your business.
Today I want to quickly explain the difference between Philanthropy & Corporate Social Responsibility. To highlight a business model that supports a social cause in a big way; in fact, since 2006 they have given over 50 million items in 70 countries. Lastly, showcase a company that is providing fantastic philanthropic solutions for business that make a positive impact to your bottom line. Stay tuned to the end of this podcast where I will provide you with links and details so you too can make a difference!
Let’s start with a recap of Jasmin interview on episode 003 which inspired me to pick this topic for today’s episode.
As a serial entrepreneur what intrigued me was Jasmin stated she was excited about integrating philanthropy into the core values of the company. She was enthusiastic about combining the profitability of the company with her passion for animal welfare. Each time she sells a product to a customer she can provide a donation to support animal health.
This to me is a win-win-win situation. As business owners, if we link sales of products or services to high impact projects that we are passionate about, and can integrate positive results to our business bottom line, that resonates with our customers…. we all become a part of something great!
Today, the desire to give is on the rise. Yet surprisingly, less than 6% of giving is through businesses. And that 6% is comprised almost entirely of donations from large corporations. Smaller businesses haven’t had the tools necessary to make powerful and effective contributions that are aligned with their goals.
Let’s quickly discuss the difference between Corporate Philanthropy and Corporate responsibility to determine which one is a better path for you?
Corporate philanthropy is a company’s way of giving back to its community -- local, regional, national or international -- through financial donations and non-cash contributions such as time, expertise and tangible goods like computers, medicine, food and textbooks. Companies can donate to charities and non-profits by giving directly from the company’s cash or assets, fundraising through its employees and fundraising from others.
Corporate social responsibility not only deals with corporate philanthropy but also other issues that affect the environment, consumers, human rights, supply-chain sustainability and transparency for the greater good of the world at large. Businesses that integrate social responsibility into their missions acknowledge that their business processes have an impact beyond the company. Therefore, they address issues like philanthropy, environmental-impact assessments and providing good working conditions, among others, to try to better their communities or diminish potential harm, such as greenhouse gas emitted from their manufacturing plants.
Building trust beyond the feel-good aspect of helping communities, taking responsibility for their social impact helps businesses build trust with their communities, consumers and other companies. This added trust can help elevate the brand, opening the possibility for increasing market share and increasing profit. Engaging the community can also help generate new ideas and product innovations.
A company giving its time or money to charities and non-profits not only help those the donations serve but also the company through improved employee engagement. As reported by Forbes magazine, research has found that companies who encourage their employees to volunteer had a higher retention rate because employees who enjoyed their workplaces were less likely to leave. This directly affects the company’s bottom line because it will spend less on recruiting, hiring and training new employees.
An example of a successful for-profit company that have a philanthropic business model commitment to support a social cause with every sale, 365 days a year is Toms' "One for One" model, in which the footwear company provides a pair of shoes to a child in need for each pair of shoes it sells. Interesting to see that since 2006 when Toms started they have now expanded. They now have other amazing programs such as:
The Gift of Sight Has helped restore sight to over 360,000 people in need. We give sight in 13 countries, providing prescription glasses, medical treatment and/or sight-saving surgery with each purchase of eyewear.
Clean Water When You Buy Tom’s Coffee - TOMS Roasting Co. launched in 2014, and has helped provide over 250,000 weeks of safe water in 6 countries. With each purchase of TOMS Roasting Co. Coffee, we work with our Giving Partners to provide 140 litres of safe water (a one-week supply) to a person in need.
Safer Birth When You Buy TOMS Bags - In 2015, TOMS Bag Collection launched in 4 countries with 3 Giving Partners to help address the need for advancements in maternal health. Purchases of TOMS Bags help our Giving Partners provide training for skilled birth attendants and distribute birth kits containing items that help a woman safely deliver her baby. With every bag you purchase, TOMS will help provide a safe birth for a mother and baby in need. One for One®.
Toms is one success story. However, there are many more examples of companies donating a percentage of each sale to a certain cause or variety of causes, with some allowing customers to choose where their donations go. If you think your business will lose money with a model like this, think again: incentives only help your bottom line.
"Research tells us that 80 percent of customers are willing to switch to another brand that's associated with a charity of their choice," said Marti Beller, co-founder and CEO of charitable fundraising and donation platform PlanG. "There is virtually no downside to driving your business while impacting the greater good. It's a win-win-win — non-profits receive increased donations, customers feel connected and empowered, and businesses win loyal customers." Stop for a second right now and find that ‘something’ you are passionate about, that ties into your purpose, your mission & core values because shortly I will reveal how you can make a difference.
BUY1GIVE1 (B1G1) is a global giving initiative that maximises the impact of philanthropic business contributions through the online giving platform.
Because it is funded by a unique business membership model, the administrative costs are completely covered by your membership fee. That means 100% of your contributions go directly to your selected projects.
The membership fee allows us to continue developing the resources necessary to support your business, leveraging and deepening your impact. The cost to get involved for a small company:
+ One-time Set-up Fee: USD 200
When you’re part of B1G1, you can link the sales of your products and services to carefully selected, high-impact projects across the globe, creating your own ‘one-for-one’ Giving Stories.
You can start by selecting projects that resonate with your company’s mission or you can simply give to the projects you personally like.
Many projects in B1G1 only require a few cents to make a difference. So there’s no need to wait until you have a large company. And you simply set your own giving schedule that fits into the way you do business.
Buy1 Give1 - https://www.b1g1.com/businessforgood/
Video message from Masami Sato - https://youtu.be/EUeRWBDxehE
Video how Buy1Give1 works - https://vimeo.com/157098364
"If you want to go fast, go alone. If you want to go far, go together."
- African Proverb"